Daily Currency Update
AUD - Australian DollarThe Australian dollar came under sustained pressure through trade on Thursday edging a quarter percent lower to touch intraday lows at 0.6263. The US dollar outperformed for a second consecutive day as demand for risk faltered amidst a glut of dour US data sets. Investors shed away from risk assets forcing equities, treasury yields and the AUD lower. Markets largely ignored the better than expected domestic labour market report, acknowledging the reporting period only encompassed the first two weeks of March and failed to capture the vast number of job losses. Instead attentions will turn to next months unemployment read for a better indication of the scale of economic damage caused by the coronavirus. Uncertainty continues to drive direction and we expect the AUD will remain vulnerable to missteps in demand for risk through the short-term. That said, the AUD has enjoyed strong gains through this morning’s open, buoyed by reports a clinical trial in Chicago have showed promising recovery rates for patients infected with COVID-19 following daily infusions of remdesivir. While the results have not been vetted by the FDA or CDC they offer some hope that we may be able to control the devastation caused by the pandemic while waiting for an effective vaccine. Having jumped back through 0.63 the AUD currently buys 0.6353 US cents.
Key Movers
The US dollar advanced through trade on Thursday, touching a one week high as the flight to safety continued. US jobless claims increased exponentially again as another 5.2 million citizens’ filed for unemployment. Twenty-two million Americans have now lost their job through the last month, a staggering 13% of total workforce and a stark reminder of the scale of the economic impact caused by the global public health crisis that is the coronavirus. The dollar moved higher against most majors, advancing against the yen as Japan extended its state of emergency to envelop the nation and not just major cities while the euro fell back below 1.09. The combined unit remains under pressure as last week’s half-trillion euro support package is broadly seen as insufficient, essentially falling short of the number needed to support the continent through the ongoing pandemic. Attentions today remain with short term risk flows and we expect the dollar will remain well bid as uncertainty continues to dominate direction.
Expected Ranges
- AUD/USD: 0.6230 - 0.6450 ▼
- AUD/EUR: 0.5730 - 0.5930 ▲
- GBP/AUD: 1.9480 - 1.9930 ▼
- AUD/NZD: 1.0520 - 1.0680 ▲
- AUD/CAD: 0.8830 - 0.8980 ▼